- December 27, 2017
- Posted by: Admin
- Category: Grow your Business
Turning a small business into a big one is never easy. The statistics are grim. Research suggests that only one-tenth of 1 percent of companies will ever reach $250 million in annual revenue. An even more microscopic group, just 0.036 percent, will reach $1 billion in annual sales.
In other words, most businesses start small and stay there. It is therefore important to pursue growth for your business and see it become big business. Changing times and seasons affecting the market conditions would require managing your business in ways that can make it grow significantly.
Here are five growth strategies that small businesses should consider. Not every strategy will be right for your situation, but some of these might offer an opportunity for your business.
1. Define your value proposition
For your business to sustain long-term growth, you must understand what sets it apart from the competition. Identify why customers come to you for a product or service. What makes you relevant, differentiated and credible? Use your answer to explain to other customers why they should do business with you. Figure out what special benefit only you can provide, and forget everything else. If you stray from this proposition, you’ll only run the risk of devaluing your business.
2. Know your target audience
You got into business to solve a problem for a certain audience. Who is that audience? Is that audience your ideal customer? If not, who are you serving? Nail down your ideal customer, and revert to this audience as you adjust your business to stimulate growth.
3. Look into your competitions
No matter your industry, your competition is likely excelling at something that your business is struggling with. Look toward similar businesses that are growing in new, unique ways to inform your growth strategy. Don’t be afraid to ask for advice. Ask yourself why your competitors have made alternate choices. Are they wrong? Or are your businesses positioned differently? The assumption that you’re smarter is rarely correct.
4. Leverage on key partnerships
In business, you don’t always have to compete but you can leverage partnerships in a savvy way. Leveraging partnerships is also viable for small business growth strategy. Small business can benefit greatly from partnerships. Aside from the stability of knowing that some parties or entities will have your back, the partnership may also help you cut down on costs, increase efficiencies and, ultimately, help your business grow.
Growth strategies in business also include diversification, where a small business will sell new products to new markets. This type of strategy can be very risky. A small business will need to plan carefully when using a diversification growth strategy. Marketing research is essential because a company will need to determine if consumers in the new market will potentially like new products.
Small businesses have no choice but to grow if they want to stay in the market. Big businesses started small but they have continued to grow due to commitments made towards their customers. Some of the highlighted strategies used by big business and that could apply to your small business as well. Make a move to grow your business today!